Poverty: How the U.S. measures UP

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Poverty How the U.S. measures UP

• Renea Lombardi
• PHE 410

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• The gap between rich and poor is now approaching
  levels not seen since the late 1920s
• In 2007, 37.3 million people were living in
  poverty.
• Source U.S. Census Bureau, Housing and Household
  Economic Statistics Division

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There are two slightly different versions of
the federal poverty measure  The poverty
thresholds and The poverty guidelines.

• The poverty thresholds are the original version
  of the federal poverty measure and they are
  updated each year by the Census Bureau. The
  thresholds are used mainly for statistical
  purposes  for instance, preparing estimates of
  the number of Americans in poverty each year. 
• The poverty guidelines, often informally referred
  to as the "Federal Poverty Level (FPL), are
  issued by the Department of Health and Human
  Services.  The guidelines are a simplification of
  the poverty thresholds for use for administrative
  purposes  for instance, determining financial
  eligibility for certain federal programs.
• Source United States Department of Health
  Human Services

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• Measure of Need Poverty Threshold
• Family A has five members two children, their
  mother, father, and a great-aunt
• Their threshold was 25,364 dollars in 2007.
• Suppose the members' incomes in 2007 were
• Mother 10,000
• Father 7,000
• Great-aunt 10,000
• First child 0
• Second child 0
• Total family income 27,000
• Compare total family income with their family's
  threshold
• Income / Threshold 27,000 / 25,364

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2008 Oregon median family income vs. 2008 federal poverty income guidelines 2008 Oregon median family income vs. 2008 federal poverty income guidelines 2008 Oregon median family income vs. 2008 federal poverty income guidelines 2008 Oregon median family income vs. 2008 federal poverty income guidelines 2008 Oregon median family income vs. 2008 federal poverty income guidelines 2008 Oregon median family income vs. 2008 federal poverty income guidelines 2008 Oregon median family income vs. 2008 federal poverty income guidelines 2008 Oregon median family income vs. 2008 federal poverty income guidelines
Number in family Annual poverty income HUD estimated median income 80 of median income 50 of median income
1 10,400 41,200 33,000 20,600
2 14,000 47,100 37,700 23,550
3 17,600 53,000 42,400 26,500
4 21,200 58,900 47,100 29,450
5 24,800 63,600 50,850 31,800
6 28,400 68,300 54,650 34,150
7 32,000 73,000 58,400 36,500
8 35,600 77,700 62,150 38,850
Over 8 add per child 3,600 n/a n/a n/a
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What programs use the poverty guidelines?

• Department of Health and Human Services
• Head Start
• Low-Income Home Energy Assistance Program
  (LIHEAP)
• State Childrens Health Insurance Program
• Medicare  Prescription Drug Coverage
• Community Health Centers
• Family Planning Services
• Job Opportunities for Low-Income Individuals
• Assets for Independence Demonstration Program
• Department of Agriculture
• Food Stamp Program
• Special Supplemental Nutrition Program for Women,
  Infants, and Children (WIC)
• National School Lunch Program
• School Breakfast Program
• Department of Labor
• Job Corps

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Proposals/Solutions?

• Although the thresholds in some sense reflect
  families needs, they are intended for use as a
  statistical yardstick, not as a complete
  description of what people and families need to
  live.
• Poverty thresholds were originally derived in
  1963-1964, using
• U.S. Department of Agriculture food budgets
  designed for families under economic stress
• Data about what portion of their income families
  spent on food

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Controversy?

• Failing to include income that many low-income
  people receive in the form of public assistance,
  some critics maintain that the extent of poverty
  is over-stated.

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